Navigator Consulting, in association with the Cyprus Chamber of Commerce & Industry, are pleased to announce a training programme on Tactical Sales Initiatives and Online Marketing in the Cyprus Travel Sector.

The training will take place in Ayia Napa on April 24-25, 2018 (venue to be determined). Consultancy visits will also be arranged with each participating company. The training will be led by Philip Ammerman.

The seminar costs are covered by the Human Resources Development Authority for eligible participants. For further information, please contact:

Background

The Cyprus Tourism Sector faces three key challenges:

Overcapacity of Supply: The majority of Cyprus tourism arrivals take place from June – September of each year. Incoming tourism numbers have been largely stable over the past 15 years and have not kept up with the increase in hotel bed capacity. Over six months of the year feature very low occupancy and limited flight access.

Disintermediation: The rise of the internet and online travel agencies (OTAs) or airlines such as Booking.com, Ryanair or Aegean has seen key revenue streams for hotels, travel agents and tour operators fall. Travel consumers are internet-savvy: they are perfectly able to select and compare fares using direct providers or aggregators such as Skyscanner.net.

Declining Terms of Trade: The commoditisation of travel means that Cypriot tourism companies face declining prices and margins, as well as a shift in bargaining power from themselves towards other trade channels. Given the rising cost base in Cyprus, this means that tourism service providers must work harder each year to break even.

In this environment, Cypriot tourism providers must manage their inventory and pricing carefully. Whether this is a room night or a seat on a departing flight, Cypriot hotels and travel agents must engage more frequently and more regularly in tactical sales offers to attract business, particularly in the low and shoulder season.

Tactical sales initiatives can be grouped around a number of targeted outcomes:

Experience from consultancy assignments indicates that there are several problems with the way special offers are currently generated in the Cyprus travel sector:

Offers are undifferentiated: The same special offer is sent to all customer segments, irrespective of place of origin, previous consumer behavior, flight availability or language.

Offers do not include sufficient value: While many hotels or other providers offer a “10% early booking discount”, this discount is not of sufficient interest for many tourists to make the reservation. This is also insufficient given the vast difference between low season and high season costs.

Offers are not based on a proper cost analysis: Most hotels or providers see the top-line discount as strong value. They ignore the real cost analysis of such a discount, or alternative offers which may have higher value for customers. A good example of this is the half-board special offer, or the sea view room upgrade offer. The actual costs of offering this per guest are rarely calculated either in terms of variable or real costs, or in terms of opportunity costs.

Offers are typically defined prior to booking and departure. Very little is done to offer tactical sales initiatives within the property during the guest occupancy.

Roles and responsibilities are diffused. For instance, many receptionist staff have a higher benefit on special offers (such as car rental or excursion sales) than to the hotel owners.

The Cypriot market is often ignored. While many hotels target Cypriot customers or expat residents in Cyprus, they do not do so in terms of active promotion, but do so in the same way they target foreign tourists. This leads to very low results.

Offers are often incomprehensible: Most hotelliers, for instance, provide a special offer using trade terms such as “supplements”, “BBT”, etc. These are often so difficult to understand, that a customer has to telephone and ask for clarifications. This in turn reduces the impact of emails, billboards or other promotional methods.

Defining, Costing and Communicating Tactical Sales Initiatives

We will review twenty strategies for using tactical sales initiatives. Each initiative will be explained and demonstrated using case studies.

Discounting: OTA / Channel Specials

Discounting: Daily Deal Websites

Discounting: Direct Online

Supplements: Half Board / Full Board

Supplements: Room Upgrades

Supplements: In-Resort Credit

Supplements: Spa Treatments

Supplements: Lessons or Activities

Customer Segments: Children Stay Free

Customer Segments: Loyalty Upgrades

Customer Segments: Loyalty Free Stays

Customer Segments: Regenerate Lost Accounts

Customer Segments: Group Offers

Time Planning: Mid-Week Specials

Time Planning: Weekend Specials

Time Planning: Seasonal Specials and Low-Season Offers

Time Planning: Long Stay Offers

Time Planning: Holiday Specials

Time Planning: Selling Events

Other Promotions

Morning Coffee Break10:50 – 11:05

Calculating the Cost and Revenue of Service, Part 111:05 – 12:45

Providers tend to see special offers in a single dimension—filling occupancy—rather than in terms of costs of service. In this module, we will review different forms of calculating the cost of service. When viewed in this light, the real costs and benefits of a special offer or other tactical initiative become clear.